Bitcoin Exchanges and Verifying High Volume Trader identities

Bitcoin exchanges are the premier solution for the everyday consumer to buy and sell Bitcoin in exchange for fiat currency. However, it seems like most Bitcoin exchanges are flagging accounts who are trading at higher volumes on a monthly basis. Sometimes, these conversations can lead to some very awkward information being asked from the consumer.

Bitstamp – Providing A Copy of Passport or Birth CertificateBitstamp

Every Bitcoin exchange around the world has to comply with existing legislation and regulations in the region they are operating from. In the case of Bitstamp, the company is compliant with all EU regulations concerning Know-your-Customer and Anti-Money Laundering requirements. After all, Bitcoin exchanges attract quite a lot of money from people looking to buy, sell and trade Bitcoin.

For most traders, the basic verification process is rather straightforward. Bitstamp requires some personal documents, such as a scan of a government-issued ID, and a bank statement or a utility bill to verify the address of residence. Once again, both of these documents are part of the EU regulations regarding money transmitting businesses and is not something Bitstamp can control.

However, once a trader surpasses a certain volume –

Read more ... source: CryptoArticles